Question: The Health Insurance Plan of California (HIPC) was an exchange and it failed. What's different about the new exchange?
Answer: The HIPC sank because it was only attracting high risk groups. It was out-maneuvered by the carriers. The California Health Benefit Exchange is very different from the HIPC. Most importantly, individuals and small business who are eligible for tax credits will have to participate in the Exchange in order to take advantage of them. This is a huge core population of users - large enough to spread the risk broadly.